Explain what remedies are available under the Law Reform (Frustrated Contracts)

Alan owns a health food store. One product, Amazopill, is supplied by Popopill Ltd. Amazopill states that it helps people lose weight as part of a calorie controlled diet. Alan has always bought large quantities of Amazopill from Popopill Ltd as his customers like it and he makes large profits from sales. Last month he paid Popopill Ltd £10,000 for six month’s supply of Amazopill. He received delivery of the pills last week. However, the Government have now informed all shop traders of Amazopill that it is now illegal to sell this item to anyone as it has been discovered that it contains a substance that is deadly if consumed in sufficient quantities. Any trader found selling such pills will receive very high penalties and a prison sentence.

Explain with examples two ways in which a contract can be discharged under the law of frustration.

Explain what remedies are available to Alan under the Law Reform (Frustrated Contracts) Act 1943. Discuss whether Alan is entitled to any ‘valuable benefit’ under the Act.

 

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